Settlement of claims where the claimant or near relative are residing or depositor died in abroad-Clarification issued by the directorate

Dear Comrades,

Directorate has been issued clarification in respect of settlement of claims where the claimant or near relatives are residing or depositor died, in abroad vide memo No.116-40/2009-SB datged 18/06/2012. As per the orders "It is already prescribed in rule 87 (9) (iii) that payment of the claim to a claimant residing in a foreign country will be made to the holder of Power of Attorney in India. The sanctioning authority should compare the original document with the self attested photocopy (if the same is not attested by a Gazetted Officer) and record under dated signatures with stamp "Compared with original". It is further clarified that ID and address proof of claimant and acceptance of two witnesses as well as payment by a crossed cheque are sufficient safeguards to stop fraudulent settlement of claims. As such there is no need for verification of either death certificate or power of attorney issued by the above noted countries. It is clarified that any deposit/investor who opened account or purchased certificate in India and went abroad thereafter he/she can give power of attorney to any body in India to receive payment on his behalf. In case any body presents power of attorney issued from any of the above noted countries, there is no need of any further verification or authentication before making payment. How ever proper identification of the power of attorney holder should be taken before making payment".

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